Strix Group PLC Completion of Acquisition and Trading Update (0034I)
November 30 2022 - 1:00AM
UK Regulatory
TIDMKETL
RNS Number : 0034I
Strix Group PLC
30 November 2022
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
Strix Group Plc
("Strix", the "Group" or the "Company")
Completion of Acquisition and Trading Update
Completion of Billi acquisition
Strix Group Plc (AIM:KETL), the AIM quoted global leader in the
design, manufacture and supply of kettle safety controls and other
complementary water temperature management components, is pleased
to announce, further to its announcement on 5 October 2022, that it
has today completed the acquisition of Billi Australia Pty Ltd,
Billi New Zealand Ltd and Billi UK Ltd (together "Billi").
Billi is a leading brand supplying premium filtered and
non-filtered instant boiling, chilled and sparkling water systems
with manufacturing based in Australia. Billi has a successful
history of growth with a double-digit revenue CAGR over the past
five years and strong cash conversion. The acquisition materially
accelerates Strix's growth plans for its Water & Appliance
categories and provides an entry into the high growth and
strategically important hot tap market.
Trading update
In recent weeks it has become increasingly evident that the
disruptive effect of ongoing lockdowns being enforced in China,
whilst relatively short in length, have adversely impacted two of
the top five of Strix's major OEM customers, with further
disruption anticipated. As a precaution, Strix has reinstated its
secondary warehouse to minimise any disruption with its own
shipments.
As a result of lockdown situations as described above and
continued macroeconomic and geopolitical uncertainty, not only in
China but across a number of its key export markets it now
anticipates adjusted profit after tax for the full year to be
approximately GBP23m. The Board recognises that these uncertainties
could continue into 2023.
December remains a significant period for the Group due to the
active trading ahead of the Chinese New Year public holiday when a
number of its major customers and suppliers cease operations for a
period. Strix will announce a further update on trading on 26
January 2023 which is consistent with its typical reporting
timetable.
Strix continues to maintain its strong market share position in
Kettle Controls and is outperforming the market in the Appliance
and Water categories. In addition, Strix has a strong balance sheet
and it has significant financial flexibility for the medium term to
navigate headwinds and deploy capital consistent with allocation of
capital priorities.
For further enquiries, please contact:
Strix Group Plc
Mark Bartlett, CEO
Raudres Wong, CFO +44 (0) 1624 829829
Zeus (Nominated Advisor and Joint Broker)
Nick Cowles / Jamie Peel / Jordan Warburton
(Investment Banking) +44 (0) 20 3829 5000
Stifel Nicolaus Europe Limited (Joint
Broker)
Matthew Blawat / Francis North +44 (0) 20 7710 7600
IFC Advisory Limited (Financial PR and
IR)
Graham Herring / Tim Metcalfe / Florence
Chandler +44 (0) 20 3934 6630
ABOUT STRIX GROUP PLC
Isle of Man based Strix, is a global leader in the design,
manufacture and supply of kettle safety controls and other
components and devices involving water heating and temperature
control, steam management and water filtration.
Strix's core product range comprises a variety of safety
controls for small domestic appliances, primarily kettles. Kettle
safety controls require precision engineering and intricate
knowledge of material properties in order to repeatedly function
correctly. Strix has built up market leading capability and
know-how in this field since being founded in 1982.
Strix trades on the AIM Market of the London Stock Exchange
(AIM: KETL).
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END
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